Short-term insurance

Soaring in challenging times

Sasria soaring in challenging times
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Sasria SOC Ltd (Sasria), South Africa’s only short-term insurer for riots, strikes, labour disturbances and terrorism, reported a 12.5% increase in gross written premium for the financial year ending March 2013 and a 75.5% decrease in underwriting results.

Sasria experienced an increase in claims frequency especially in the fourth quarter of 2012, this resulted in the increase in the combined loss ratio from 45.9% to 88.1%. This was mainly due to damages as a result of labour strikes from various sectors such as mining, transport, and farming.

Currently 80% of the claims are as a result of labour strikes. In addition, Sasria experienced an increase in the claim frequency by 91% whilst the severity of the claims increased by 135%. This reflects a new trend in the claims environment, and Sasria believes that this trend will continue in the current period and if predictions by many observers of increased labour strikes prove correct, they expect another tough year.

Mr Cedric Masondo, Sasria’s Managing Director, reports that like most insurers, Sasria’s increased claims were balanced by outstanding investment results on the back of strength in the domestic equity and bond markets. Despite the challenging times, Sasria has managed to prove its ability to manage and extend its relevance as a unique business to the insuring public and broader society.

In order to further prove its relevance, Sasria has increased its Corporate Social Investment contribution from 2% to 4%, this will assist Sasria to contribute to the Government’s National Development Plan by focusing on skills development and enterprise development.

‘Our success would not be possible without the support of all our customers, intermediaries, agent companies and other stakeholders,’ says Masondo.

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